Public-Private Partnership and its role in the increased efficiency of public governance system

1. Public-Private Partnership and its role in the increased efficiency of public governance system I.V. Zapatrina, Chairman of the Board of the Ukranian Public-Private Partnership Development Support Center, Economics PhD

2. European principles of public law and governance • differentiation of regulatory and governing functions of the state; • creative competition; • harmony of rights and responsibilities; • social dialogue and partnership; • equal attraction of all interested subjects toward the formation and implementation of personnel policy; • implementation of modern concepts and technologies governing the development of human potential.

3. The goal of administrative reform “step-by-step creation of such a public governance system which guarantees the formation of Ukraine as a highly developed, legislative, civilized European government with a high standard of living, social stability, culture, and democracy, will allow Ukraine to become an influential factor in the world and Europe. Ukraine’s goal is also the formation of a government system, which will come closer to the needs and questions of the people, but its highest priority will be the service to the people, and national interests. This government system will be controlled by the people, transparent, built upon scientific principles.” The Decree of the President of Ukrainedated 22.07.1998 No.810/98 in redaction dated 26.05.2006 «On measures related to introduction of the Concept of administrative reform in Ukraine»

4. Principles of public management system reform The government purposefully minimizes its intervention in life security for its citizens and takes on only those services, which at this point in social development it has the capacity to guarantee and which cannot be found in the service market. It constantly wants deregulation, to hand over it’s functions to the self-regulated market and non-government organizations on the principles of: • 1. determining the list of services needed by the citizens, as well as the criteria for evaluation of the efficiency of these services; • 2. relations between consumers and suppliers of products and services are regulated by the market, aside from those situations, when it cannot adequately satisfy society’s needs; • 3. management services have to be paid only when the citizen has a choice, to use this service or not use it; • 4. management services have to be offered at the lower levels of executive power, which will ensure these services for the consumers. The Decree of the President of Ukrainedated 22.07.1998 No.810/98 in redaction dated 26.05.2006 «On measures related to introduction of the Concept of administrative reform in Ukraine»

5. Expenses of an expanded government in Ukraine and countries of EU, %GDP Data from the Institute of economy and forecasting of NAS of Ukraine

6. Main Functions of Public Authority • development of a strategic course concerning issues of internal and external policy of the state/ territorial development • development of drafts normative-legislative acts • efficient management of public and city finance and public/communal property as well as control of their use. • Provision of public services

7. Some characteristics of Ukraine’s regulatory system • simplicity of carrying a business – 142nd place from 183 countries in the world • efficiency of the tax system – 181st place from 183 countries in the world • fiscal load on businesses – level of GDP redistribution through the budget for 2009 – 42.4% According to Program of economic reforms

8. Management of public/communal property 1.State enterprises - 500 out of 4000 of Ukraine’s enterprises, where 50% or more belongs to the state, are currently in bankruptcy status 2. Communal enterprises - receivables in sector of housing and communal services (heat supply, water supply, sanitation, city electric transport) has reached 12 million UAH - technical condition of the branch (part of the networks of the water/heat supply system, and sanitation, which are in distressing conditions, is more than 30%) According to program of economic reforms

9. Public Services Public Services – services offered by the state authority, local governments, enterprises, institutions, organizations managed by them. State services – services offered by the state authority (mainly the executive branch) and by state enterprises, institutions, organizations, as well as, by local authorities in accordance with the powers delegated by the state, at the expense of the state budget. Municipal services – services offered by local authorities, as well as members of executive power and institutions, enterprises, and organizations, in accordance with the powers delegated by the local government, at the expense of the local budget. Clarifications of the Ministry of Justice dated 18.12.2009 No.967-0-2-09-22 Services provided by the public sector, as well as the private sector, with the public power responsible for it and at the expense of the public funds.

10. Medical support for 100,000 people According to the Program of economic reforms

11. Characteristics of the nation’s health According to the Program of economic reforms

12. Share of public sector in GDP (%) Info of the Institute of economy and forecasting of NAS of Ukraine

13. Development of Public-Private Centers in the world PPP-1997 PPP-2007 Info of the Polish PPP center

14. Public-Private Partnership in Europe I.Herbst: speech on the III Astana’s Economic Forum, Kazakhstan, 1-2 July, 2010.

15. The differences between the public and private sectors competition

16. The potential of public-private partnership to provide public services in Ukraine • The state of public services provision in our country is negatively perceived by the population and businesses and requires improvement; • The inclusion of the private sector in providing public services will not require vital changes in legislative regulation of the sphere of budget support and its increase. • The transfer of a few public services to a private business will give us the opportunity to lighten the load of state workers from routine labor and will give them the chance to concentrate on solving strategic questions of development, the improvement of legislative regulation, and other similar tasks. The Law of Ukraine “On state-private partnership” does not make provision for PPP in the performance of public services

17. Forms of interaction between the public and private sectors in the sphere of public management • The transfer of functions in provision of public services to the private sector. • Joint implementation of socially important projects • Value for Money: • Decrease of services cost while conserving the services quality • Increase of services quality on a fixed cost of the services competition Quality standards for services Monitoring the service quality (from the public sphere and civil society)

18. Elements of public-private partnership in the sphere of public management in the Program of economic reform • Transfer to procurement of state services from state health establishments on a contractual base; • Development support for the private sector in medical services, provision of access to state financing on a competitive basis; • Approval of the law on administrative services and securing, in it, principles of delegation of authority;

19. Weak pointsin the development of PPP: • The lack of partner relations on the axis: “government – local self-government - private business” • The population’s distrust of the ‘private partner’ • Weakly developed legislative regulation system in the PPP sphere, lack of methodology and knowledge of preparation and realization of such projects; • Non-sufficient qualification and knowledge of public and business representative in the PPP sphere; • The lack of standards for service production and a developed system of monitoring quality; TASKS: CREATION OF INSTITUTIONS – CENTERS OF COMPETITION IN PPP’S SPHERE DEVELOPMENT OF SCIENTIFIC, INSTITUTIONAL, METHODOLOGICAL SUPPORT OF PPP IMPLEMENTATION OF PILOT PROJECTS DEVELOPMENT OF INSTITUTIONAL CAPACITY OF THE PUBLIC AUTHORITY

20. Thank you for your attention www.ukrppp.com